Bitcoin Price Would Retest $25K Without Silvergate Saga – Analysis
Bitcoin (BTC) remained lower into the weekend as ongoing problems at Silvergate bank weighed on markets.
Bad news is holding Bitcoin back
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding around $22,350 on March 4.
The pair had managed to avoid further losses after the initial shock surrounding Silvergate wiped 5% off the spot price in minutes.
However, with US stocks posting a strong finish to the week, Bitcoin and altcoins remained unable to capitalize on what traders claimed would normally be an opportunity for gains.
“Most global stock indices have now posted higher lows…,” popular commentator Tedtalksmacro wrote part of an overnight update.
“If it wasn’t for the Silvergate scare, BTC would be poised to break the highs above 25k next week.”
Cointelegraph contributor Michaël van de Poppe, founder and CEO of trading company Eight, hoped that a comeback for Bitcoin could still hit.
“Bitcoin fell from $23,800 to $22,300, while Nasdaq and S&P made strong pullbacks. Question of time before Bitcoin catches up,” he told Twitter followers.
A failed attempt by the US dollar to go higher formed another potential tailwind for crypto, this one still untapped as the week’s trading ended.
Silvergate sinks to all-time low
Silvergate, meanwhile, suspended its institutional fiat settlement arm, the Silvergate Exchange Network (SEN), on March 3 as bankruptcy concerns continued to mount.
Related: 3 BTC Price Hurdles Bitcoin Bulls Can’t Clear in 2023
Like someone proposed options for exchange, others lamented the bank’s downfall and hoped that the situation would improve.
Bitcoin Lawyer Nic Carter so that he had “always respected Silvergate for being unapologetically pro crypto when virtually no one else was.”
“Sad to see their current predicament, hope they come through the other side,” he added.
Shares of Silvergate Capital ( SI ) ended the week at record lows, at one point trading below $5. At its peak during Bitcoin’s 2021 all-time highs, it traded above $150.
The views, thoughts and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
